CHAPTER 7 BANKRUPTCY

Chapter 7 Bankruptcy is the best option for those individuals and couples who are clearly overwhelmed by debt and simply cannot afford to pay this debt.  Here in Arizona, we have been hit from all sides of the economy.  For those of us who have substantial credit card debts along with mortgages that are not worth what we owe, Chapter 7 is the best way for us to liquidate  our debts and get a new start to our financial future.  Filing for bankruptcy also has the added benefit that creditors will stop their harassing phone calls that you get day and night and even at work.  Moreover, in certain situations you can still keep your home, your car, certain personal property that would otherwise be sold to satisfy your creditors (e.g., retirement accounts, cash and household items).

SEE ALSO INFORMATION ON

DEBT NEGOTIATION

CHAPTER 13 BANKRUPTCY

HOW CHAPTER 7 WORKS

Chapter 7 Bankruptcy is way eliminate your debt and be free from continued payments to your creditors.  Under the 2005 amendments, you do have to qualify under the “Means Test” to see if your income falls before the average income for individuals and couples in the area.  Assuming you do fall under the “Means Test”, in a Chapter 7 filing, you consult with your attorney who will prepare your bankruptcy petition and the applicable schedules for filing with the bankruptcy court.  You will have a meeting of creditors – a meeting with the bankruptcy Trustee to find out some particular information that applies in your case.  Once this hearing is complete and all the remaining aspects of your case have been resolved, your bankruptcy should be finalized within 4 to 6 months.

BENEFITS UNDER CHAPTER 7

Speed and Relief are two very valuable benefits that one gets filing for Chapter 7 bankruptcy protection because the process does not take too long to complete and you will be free of your debts by the time your bankruptcy is discharged.  However, one of the collateral benefits to filing for Chapter 7 bankruptcy is that you will have a much easier time helping your credit score improve over time versus spending countless years trying and failing to get your debt under control.

Also, bankruptcy laws recognize that every individual needs to have certain basic things in life: food, clothing, shelter, transportation, communication, etc, and therefore sets a limit on the things that a Trustee is allow to take to satisfy your debts.  So, you can feel reassured that even though you need to file for bankruptcy to get relief from creditors and overwhelming debt, you will still be able to keep your core personal belongings in life.

But most importantly, when the sheer stress of your debt become debilitating, you have to try hard to side step creditor calls and sometimes even having to deal with creditor showing up at your house, bankruptcy gives you that clean start, freedom from overwhelming debt and peace of mind.

CREDIT COUNSELING

Prior to filing for bankruptcy you must complete a credit counseling course that is approved by the bankruptcy court in the jurisdiction you plan on filing your bankruptcy petition.  These credit counseling courses generally range from $30 to $60 dollars and can be done online – generally taking anywhere from an hour to two hours to complete.  Please note that you must also take another of these credit counseling classes after your Meeting of Creditors Hearing (341 Hearing).  Please call us at (480) 570-6591 for more information on credit counseling.

The Law Offices of Simon P. Kennedy, PLLC is a debt relief law firm providing clients debt relief services and/or bankruptcy to clients in the greater Phoenix area, including, Phoenix, Tempe, Scottsdale, Chandler, Queen Creek, Glendale, Mesa, Gilbert, Peoria, Sun City, Avondale, and Tolleson.  We also provide bankruptcy and debt relief services in Pinal County, Coconino County, Yavapai County, Prescott, Flagstaff, and Yuma.

The Law Offices of Simon P. Kennedy, PLLC, is a debt relief agency and helps clients reduce and liquidate client debt through debt negotiation and bankruptcy